What Must Happen for the ITM Call Option to Be Profitable after Accounting for the Premium?
For the ITM Call option to be profitable, the underlying asset's price at expiration (or when the option is sold/exercised) must be higher than the option's breakeven point. The breakeven point is calculated as the Strike Price + Premium Paid.
In the example ($42,000 Strike + $3,500 Premium), the price must be above $45,500 for the trade to yield a net profit.
